Bids are due this month for Abu Dhabi's Umm Al Nar independent water and power project.

The shortlised bidders have already formed bidding consortia with some banks to back them. Other companies may go it alone, a senior Abu Dhabi Water and Electricity Authority (Adwea) official said.

Regional and local banks are likely to come in as arrangers and sub-arrangers.

After the competitive process, the selected developer will own 40 per cent of a "special purpose vehicle" to purchase, develop, build, own, operate and maintain the Umm Al Nar water and power complex.

The remaining equity will be held directly or indirectly by Adwea.

The Umm Al Nar complex, east of Abu Dhabi, currently has power and desalination capacity of some 1,100 MW and 100 million gallons per day (mgpd) respectively.

A further 62.5 mgpd of desalination capacity is under construction at the complex which is expected to be commissioned before the execution of project agreements and the commercial close of the project.

The project will comprise the purchase of the new 62.5 mgpd desalination capacity and two recently commissioned units of roughly 7 mgpd with associated infrastructure and the development, financing and construction of at least 1000 MW of new net electricity generating capacity and potentially additional water generation capacity.

Commissioning of the first of the new power units should be completed by summer 2005 and the project should be fully operational by summer 2006.